19

4.

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proposed draught, dredging would be necessary in Hong Kong waters over an area and at a cost in regard to which he

was preparing figures. Would the Hong Kong Government

either undertake this dredging, or allow the Chinese

authorities to undertake the work?

Mr. Goodrich explained to me that in his world-wide experience of such matters, it had always been proved that, contrary to the initial fears of a down-river port, when an

up-river port was opened, the down-river port invariably

gained instead of suffering. He cited Albany and New York, Manchester and Liverpool, Richmond and Norfolk, and claimed

that Whampoa would benefit and not hurt Hong Kong.

5.

If an agreement was not possible in regard to (1) of paragraph 3, or in regard to (2) of that para, the Whampoa Port Administration would perforce use the alternative channel

across the Lintin Flats. Its use would involve 30 miles

further steaming as between Hong Kong and Whampoa and probably the same deviation for vessels bound to Whampoa from all

directions except the South. The important consideration

involved however was whether Hong Kong would work with Whampoa

or work against it. He strongly urged cooperation and hence

his call. He genuinely believed that Hong Kong trade would benefit apart from goodwill. He promised me a written com- munication with facts and figures very shortly.

6.

As the figures are not yet ready, I have written this

minute for record.

(sd) A. P. Blunt.

23rd July, 1937.

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